Out in the field…March 2010

Last week I was in California and Oregon calling on customers.  Most were Rental Equipment Companies and Engine Parts Warehouse Distributors.  As I found in Alabama and Georgia in February, at best, cautious optimism rules the day.  Most feel we’ve hit bottom, but many have yet to see improvement in the markets they serve. 

They expressed what we have been hearing for the past year.  One manager commented that customers are cannibalizing equipment for parts rather than buying a part they need.  Another said that for their own equipment they are only “fixing to fail”, meaning that they only work on equipment when it breaks…they are not doing preventive maintenance.  On one visit I made, a customer called and leased a piece of equipment.  I commented that it was the kind of call you like to hear.  Yes, but the salesperson told me that they used to lease that piece of equipment for $450 per day and now they are only charging $250. 

At the Engine Parts Warehouse Distributors I called on, I didn’t see a lot of inventory.  WDs are ordering for customers as needed rather than stocking for when needed.

So what does this tell us?  Perhaps we have hit bottom.  We are seeing some activity and it has appeared to be picking up in the past few weeks.  There is pent up demand.  As customers look to put equipment back into service, they will need to replace parts taken from one piece of equipment for another. 

At  Tiffin Parts, we are doing a number of things to help our customers control costs to be more competitive and profitable:

-We stock the parts so you don’t have to…we have what you need when you need it

-We drop ship and will blind ship directly to your customers if requested

-Redesigning our pricing and freight policies to save you money

We want to hear from you…

-What are you seeing in the markets you serve?

-What more can we do to help you to be successful?

Let us know!